Armstrong World Industries (NYSE:AWI) Stock Crosses Above 50 Day Moving Average - Here's Why

Key Points

• Armstrong World Industries shares rose above their 50-day moving average, reaching $167.67 before closing near $166.42. The stock remains below its 200-day average of $169.85.
• Analysts maintain a generally positive outlook, with seven Buy ratings and two Holds producing a consensus “Moderate Buy” rating and a $203.12 price target, despite several recent target-price cuts.
• The company reported revenue growth of 11.9% year over year but missed quarterly EPS expectations, while also raising its quarterly dividend to $0.373 and authorizing an $800 million share-buyback program.

Armstrong World Industries, Inc. (NYSE:AWI - Get Free Report)'s stock price passed above its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $166.29 and traded as high as $167.67. Armstrong World Industries shares last traded at $166.42, with a volume of 616,080 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. UBS Group decreased their price objective on Armstrong World Industries from $203.00 to $190.00 and set a "neutral" rating on the stock in a report on Wednesday. Truist Financial dropped their target price on Armstrong World Industries from $230.00 to $210.00 and set a "buy" rating for the company in a report on Wednesday. DA Davidson set a $200.00 price target on Armstrong World Industries in a research report on Wednesday. Jefferies Financial Group reaffirmed a "hold" rating and issued a $190.00 price target on shares of Armstrong World Industries in a research note on Wednesday, July 29th. Finally, JPMorgan Chase & Co. lowered their price objective on Armstrong World Industries from $220.00 to $200.00 and set an "overweight" rating for the company in a research report on Wednesday. Seven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $203.12.

Armstrong World Industries Trading Up 0.3%

The company has a quick ratio of 1.06, a current ratio of 1.45 and a debt-to-equity ratio of 0.55. The stock's fifty day moving average price is $166.29 and its two-hundred day moving average price is $169.85. The company has a market capitalization of $6.96 billion, a PE ratio of 22.22, a price-to-earnings-growth ratio of 1.64 and a beta of 1.16.

Armstrong World Industries (NYSE:AWI - Get Free Report) last posted its earnings results on Tuesday, October 27th. The construction company reported $2.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.39 by ($0.13). The business had revenue of $475.80 million during the quarter, compared to the consensus estimate of $472.62 million. Armstrong World Industries had a return on equity of 38.06% and a net margin of 18.38%. The firm's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same period in the previous year, the business earned $2.05 earnings per share. Sell-side analysts anticipate that Armstrong World Industries, Inc. will post 8.32 earnings per share for the current year.

Armstrong World Industries Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 5th will be given a $0.3730 dividend. The ex-dividend date is Thursday, November 5th. This represents a $1.49 dividend on an annualized basis and a dividend yield of 0.9%. This is an increase from Armstrong World Industries's previous quarterly dividend of $0.3390. Armstrong World Industries's dividend payout ratio is 18.16%.

Armstrong World Industries declared that its board has initiated a stock buyback plan on Tuesday, July 21st that allows the company to buy back $800 million in shares. This buyback authorization allows the construction company to purchase up to 12.3% of its shares through open market purchases. Share buyback plans are generally a sign that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On Armstrong World Industries

Hedge funds and other institutional investors have recently made changes to their positions in the business. Western Wealth Management LLC purchased a new position in Armstrong World Industries in the first quarter worth about $38,000. Root Financial Partners LLC lifted its holdings in shares of Armstrong World Industries by 84.8% during the 1st quarter. Root Financial Partners LLC now owns 268 shares of the construction company's stock valued at $44,000 after buying an additional 123 shares during the period. Global Retirement Partners LLC purchased a new position in shares of Armstrong World Industries in the 2nd quarter worth $64,000. Covestor Ltd boosted its stake in shares of Armstrong World Industries by 13.2% in the 3rd quarter. Covestor Ltd now owns 531 shares of the construction company's stock worth $86,000 after buying an additional 62 shares during the last quarter. Finally, Signaturefd LLC grew its holdings in shares of Armstrong World Industries by 96.1% in the third quarter. Signaturefd LLC now owns 647 shares of the construction company's stock worth $105,000 after acquiring an additional 317 shares during the period. Institutional investors own 98.93% of the company's stock.

Armstrong World Industries Company Profile

Armstrong World Industries, Inc is a building products company that designs and manufactures ceiling, wall and other architectural solutions. Its products are used in commercial, institutional and residential spaces to support acoustical performance, interior design, comfort and functionality.

The company's offerings include mineral fiber, fiberglass, metal and wood ceilings; suspension systems; acoustical clouds and canopies; wall systems; partitions; and specialty architectural products.

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